The renewable energy generator Statkraft has embarked on a joint venture with alternative assets investment manager, Foresight and HyNet founding partner, Progressive Energy to form Grenian Hydrogen Limited.
Todays announcement (31 May) follows the three partners signing an initial collaboration agreement in October 2022.
The joint venture company will develop electrolytic (green) hydrogen projects in the UK and offer a bankable solution to major manufacturers looking to decarbonise by switching from gas to hydrogen.
“We are pleased to bring our experience in renewables development and energy markets to Grenian. With many companies already sourcing green energy to meet their electricity needs, this is the next step towards complete decarbonisation of industry with clean, renewable hydrogen produced locally and flexibly,” said Matt Kelly, vice president hydrogen UK at Statkraft UK.
Grenian will design, build, own and operate hydrogen production facilities, to make this transition easier.
Drawing from its experience running commercial-scale hydrogen demonstration projects – including Unilever’s Port Sunlight manufacturing plant – Progressive Energy will support the sites become ‘hydrogen ready’.
Foresight will offer its sector expertise in line with the company’s broader sustainable infrastructure strategies.
At present Grenian has an initial development portfolio of seven projects totalling 200MWe (MW electrical), 100MWe of which are in the engineering and consenting phase including the flagship 30MWe Chesire Green Hydrogen which was recently shortlisted for government support in the first Hydrogen Allocation Round (HAR1)
The power used by Grenian to generate green hydrogen will be contracted from renewable generation within Statkraft’s portfolio. In some instances local behind-the-meter power will be sources via private wire arrangements from local wind, solar and biomass generation.
So that the LCHA requirements are met, all power used by Grenian electrolysers will be temporally matched with specific renewable generators.
“We’ve been working with Statkraft and Foresight for 18 months now and it’s great to formalise the company and launch our new brand. The diverse skills of each partner means that Grenian brings something unique to industrial hydrogen users, which is not offered by the wider market,” said Progressive Energy’s Adam Baddeley, chief executive of Grenian Hydrogen.
“Progressive is delighted to be leading the development of the initial suite of projects on behalf of Grenian and is already driving the expansion of the portfolio with larger-scale projects, which will be competitive in later auction-based hydrogen allocation rounds run by Government.”
Chris Holmes, partner at Foresight added: “Foresight is delighted to be part of this initiative. We firmly believe in green hydrogen’s potential as a key lever in aiding the energy transition, as evidenced by our other commitments in this sector.”
“The UK’s Hydrogen Strategy and the recent Powering Up Britain announcements, through their combination of policy initiatives, have now accelerated the critical role that green hydrogen will play in the next phase of the UK’s energy transition. This presents an opportunity for Grenian Hydrogen to deliver a much needed low-carbon solution for UK businesses and households”
